Used Vehicles and Electric Vehicles See Increased Sales, Maintaining Stable Prices
In the automotive market, both new and used vehicle prices have remained steady while demand has surged, according to the latest CarGurus Intelligence Report. This trend could be influenced by lower interest rates, making auto loans more accessible and potentially more affordable for a broader range of buyers.
August saw a peak in retail EV sales in 2025, with new EV sales jumping 19.5% over July and 61% since January. Top-selling EVs included the Chevrolet Equinox EV, Honda Prologue, Hyundai Ioniq 5, and Ford F-150 Lightning. On the used side, Tesla models dominated, accounting for nearly half of all sales, with the Model 3 alone representing one-third of transactions.
Used EVs priced under the $25,000 federal tax credit eligibility threshold gained share in August even as listings declined, signaling accelerated buying activity. The mix of 2026 models is growing, with the latest model year now accounting for nearly one-quarter of new listings.
Inventory levels for used vehicles are healthy, up 7.8% year-over-year, but down slightly from July. The market days' supply for used vehicles fell to a three-year low, underscoring the strength of buyer demand.
The Federal Open Market Committee is expected to announce an interest rate cut this week, which could further stimulate the auto refinance market as borrowers seek to improve their monthly liquidity through lower monthly payments. Lower interest rates could also make auto loans more affordable, potentially increasing demand for new and used vehicles.
While tariffs have impacted the prices of some new vehicles, the average price for new Volkswagen vehicles has decreased by $2,616, and the average price for new Mazda vehicles has decreased by $1,834. However, the average price for new Subaru vehicles has increased by $1,026, and the average price for new Hyundai vehicles has increased by $1,050. The automobile brand that has experienced the greatest average price increase post-tariff implementation is Tesla, with stock price gains reaching over 2,600 percent following the 2020 lows. The average price for new Nissan vehicles has decreased by $3,041, and the average price for new Mitsubishi vehicles has increased by $3,167. The average price for new Jaguar Land Rover vehicles has increased by $2,858 due to tariffs.
Used vehicle sales rose 5.6% month-over-month according to the CarGurus Used Vehicle Demand Index, indicating a strong market for both new and used vehicles. The average new-vehicle list price in August was $49,500, down 0.1% from July and 1% from August 2024.
In conclusion, the automotive market is experiencing a surge in demand for both new and used vehicles, with EV sales leading the way. Lower interest rates and a strong economy could further fuel this trend, while tariffs continue to impact the prices of certain new vehicles.
